Direct TV, Current deal will open door for broadband via utilities

The news that Direct TV signed a deal with the Current Group to deliver broadband over power lines opens up a fascinating new chapter in last-mile solutions and will certainly ramp up the competitive landscape.

The deal between Current Group and Direct TV is only the tip of the iceberg. Yes, now the satellite company can not only offer VoIP and other broadband services, but look to all of the utility companies getting into the act as well.

This would be a natural next step. The utilities already own the customer relationship, which includes billing, metering, and monitoring. What could be more of a natural fit than to add a second line to your monthly bill for data?

The additional cost to the utilities may even been so negligible that the pricing will be extremely competitive. The utilities may decide it is better to have a low initial fee and make their money on adding additional services.

In one fell swoop, the utilities have the potential to grab millions of customers away not only from cable providers but also from the carriers as VoIP services become more ubiquitous and accepted by the public.

Of course, the use of power lines for data is not new. I wrote about a large department store chain that used the technology almost 10 years ago.

This retailer used rolling cash registers during the Christmas rush to reduce the long lines at check out. Each cash register cart was simply plugged into the power line, which put the register on the company network.

The real boost, pardon the pun, to the technology came back in 2004 when the FCC approved the use of broadband over power lines services and technology.

I’m excited by the idea that the Current-Direct TV deal will help to renew interest in broadband over power-line technology, which in turn can create new services and lower prices for all of us.